Photo by realinbox.com May 2016 UpdateClick Here to see how much your home is worth. An average home sells within 40 days in Edmonton and areas compared to 45 days in 2015. In March 2016, the average days to sell was 53 days. This suggests that Buyers confidence is back and the housing demand has increased. Home prices have been steady when compared to year or year and month over month despite the oil industry's economical effects on Alberta's market place. Success Ratio Less then 19% of listing sell, in 2015 this time 25% of listings sold. This suggests a 6% decrease in homeowners successfully selling their home. The decrease in sold listings and the increase of inventory at 18.41% does in fact, show our real estate market is down compared to 2015 despite the stable prices. As a REALTOR®, I find the good homes sell quickly and the average listings seem to stick around longer or don't sell at all. Pricing and condition needs to be above average to out perform this market. For a true value of what your home could sell for in this market Click Here and receive a full report.
Resource: www.ereb.com Christian Bailey RE/MAX River City 780-490-6730 Here's How The Oil Industry Is Affecting The Housing Market In Alberta. 2016 Edmonton Market Update3/2/2016 The Alberta real estate market started 2016 with some change compared to last year in 2015. According to the Alberta Real Estate Association, the number of residential units sold in January was down compared to the same period last year. Experts say that the decrease was due to the response of home buyers to the uncertainties with regards to the economy. As seen in the January Residential Sales chart, 2,277 homes were reported as sold via the MLS Systems of real estate associations and boards in Alberta. The number was down from 2,642 or 13.8 percent from the same time last year. In the last six years, the number of homes sold for the month of January peaked in 2014, with 3,681 units sold. The Alberta Real Estate Association also released a chart showing the January Average Price in Alberta. The chart showed that there was a decrease of 2.7 percent in the average residential price compared to the homes for sale prices in January of 2015. The average price for homes in Alberta in January was $371,620, which was down from $381,758 of January 2015. Top 10 Real Estate Boards and Associations in Alberta A look at the top real estate boards and associations list and you’ll see that only three boards/associations increased the average price of homes for sales. These are the Alberta West, Fort McMurray Region, and the Calgary Region. The remaining boards/associations saw a drop in their residential average price in January. These are Lethbridge Region, Grande Prairie Region, Central Alberta, Medicine Hat Region, Edmonton Region, Lloydminster Region, and South Central Alberta. Another interesting point from the AREA report is the increase in the months of inventory. There were 8,559 new listings on the MLS Systems of real estate boards/associations in Alberta in January, which was 8.5 percent lower compared to the same month last year. However, active residential listings were 22,362 units, which is an increase of 15.1 percent from last year. As seen in the report, there is a low demand for homes for sale in Alberta, which resulted to an increase in the inventory. Unemployment remained one of the major economic factors that affect real estate market in the province. But even if the prices have dropped, they remain stable. And the increase in the inventory can lead better opportunities for home buyers. And with low-interest rates, industry experts expect the Alberta real estate market to grow in the upcoming buying season in spring. These were also an increase in the average number of days on market for properties in Alberta. It shows that buyers are not in the hurry when purchasing a new residential property. Clients are taking their time, and discussing options with their realtors before they finalize their purchase. For more information please visit Alberta Real Estate Association. Christian Bailey RE/MAX River City 780-490-6730 Click Here to Calculate Your CMHC's Premium Visit C/O Published with Brandon Scott at Benchmark Mortgages. If you have any further questions about mortgages or if you would like your own free consultation with Brandon for a strategy contact Brandon at 780-800-5500 or Brandon@benchmarkab.com 1. So what's really going on? The new policy announced represents a graduated approach to increasing the down payment requirement proportionally to the cost of a home. Canadians who already hold mortgages will not be affected by this announcement. Bill Morneau, the Minister of Finance says "This measure will increase homeowner equity, which plays a key role in maintaining a stable and secure housing market and economy over the long term. It also protects all homeowners, including many middle class Canadians whose greatest investment is in their homes.” 2. What's changing exactly? Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent minimum down payment for properties up to $500,000 remains unchanged. This change applies to all purchase homeowner loans where the purchase price of the property is greater than $500,000, but less than $1,000,000. 3. How will the new minimum down payment requirement be calculated? As an example, ff you are purchasing a $600,000 home: 5% down on $500,000 = $25,000 + 10% down on the balance of $100,000 = $10,000 for a total minimum down payment of $35,000.00. So to be clear, under the new policy you'll be required to come up with $5000 more for your down payment on the purchase of a home of $600,000.00. A purchase of $700,000 would require the buyer to come -up with $10,000 more for their down payment, etc... How can I plan properly to avoid the increased insurance premium cost? All new insurance applications received on or after February 15, 2016 will be subject to the increase, however, if your application is received before this date you'll save thousands. Its important to note that this does not mean you need to close/take possession of the new home before this date only that your application has to be received. If your application is submitted before February 15, 2016, and as long as the closing date occurs before July 1, 2016 you can still benefit from the lower premiums. C/O Published with Brandon Scott at Benchmark Mortgages. If you have any further questions about mortgages or if you would like your own free consultation with Brandon for a strategy contact Brandon at 780-800-5500 or Brandon@benchmarkab.com Christian Bailey RE/MAX River City 780-490-6730 Include 4 conditions in your offer when buying a home! Buying a home can prove to be a complicated task. It is not as straightforward as it seems. It is important to pay attention to different conditions, including those that are mentioned below. It will provide you with the guarantee that you will be able to buy safely. 1. Financing One of the most important things that buyers should check would be the terms for financing. Most people will not be able to buy a new home in the absence of a mortgage. In this case, it is important to take a look at the specifications for financing, such as the interest rate. If there is a need to apply for a specific type of loan in order to complete the purchase, such condition should also be indicated in the contract. All financing terms should be agreed upon by both parties before finally affixing your signature and considering the negotiation as done. 2. Home Inspection The home that you are going to buy must be subject into inspection. If the seller refuses to make it available for inspection, you have to refuse the offer. Typically, two to three days will be all that you need to have an inspection arranged. If in case the home inspection reveals significant problems with the property, such as structural weakness, you have the right to walk away and look for other properties to buy. 3. Sale of a Buyer’s Home Condition This is a condition that will make it possible for the seller to bridge mortgages from the old and new home. The premise is that the property of the buyer must be sold first before being able to complete the transaction. Ideally, selling your house is better before buying a new home. Nonetheless, there are some instances wherein buying comes first because of prevailing market conditions. In this instance, sale of a buyer’s home is one essential that should be met. 4. Document Review While this is something that you can do on your own, a better alternative is to hire the expertise of a third party agency to do this for you. Given their expertise, they have already gone through tons of similar documents in the past, and their insights will prove to be helpful in ways more than one. They can provide an analysis of the document, which might be difficult for an ordinary buyer. They can help in carrying out the necessary assessment, which will be instrumental towards determining the fees that you have to pay. Christian Bailey RE/MAX River City 780-490-6730 photo: courtesy of cbc.ca Alberta Housing Outlook Two industries will be major influences in the house market within the next two years. These will be the Oil and Manufacturing industries. As oil production and refinery will witness a decline of demand in their corresponding states, the economic conditions will become affected. More specifically, the world’s oil price will be lesser which should affect the lucrativeness of the oil producing provinces’ housing areas. This includes Alberta. The redeeming factor would, however, involve Manufacturing as lower overhead, and raw material costs will serve as a profit advantage for companies. With lower costs of goods sold, their corresponding provinces which include British Columbia and Ontario will have better chances of household prospects. Eventually, Alberta will rebound from the oil price challenge, and this is expected to happen in 2017. The oil price challenge inevitably affected the energy industry as lay-offs resulted from the low demands of gas production. As a result, migrations and pending power will decrease from 2015 to 2017. When it comes to house formats, both Single and Multiple Family home formats will Witness much lower unit demands in Alberta. Their prices will then be on the buyer’s favor given the market conditions. It is expected for unemployment figures to rise due to the shift of Alberta’s industry employment rates. The unemployment rate will specifically increase at 5.9% and eventually decline to 5.7% in 2017. As a result, migration flow will slow down with an estimated at 37,200 in 2016. However, since it is forecasted for the Canadian economy to eventually grow, it would perhaps be a good idea to consider a home in Edmonton in the middle of a buyer’s market. This way you have a chance to have a house in a good location, right when the market eventually picks itself up. Prepare your budget within a price range of $373,600 and $409,600 in 2016, while you can expect to pay $379,000 and $419,800 in 2017. Trends That Will Influence Housing in Alberta In reference to the decline of the World’s oil prices, it is expected for the Canadian economy to improve within a span of two years. Within 2015 to 2017, the labor market will be at a stable pace, if not on a percentage increase when it comes to wages. Hourly earnings will also rise up at 2.7 per cent. These should further engage workers to prospect their options on homes/houses. Certainly, the provinces’ gross domestic product will be on the rise despite the oil challenge. Furthermore, Canada’s GDP will remain resilient with a 1.1% growth during 2015 and 2% in 2016. The rates were much lower than the usual 2.4%, but the redeeming bounce back in 2017 will achieve a rate of 2.6%. According to Bank of Canada, the economy will leap back within two years and will continue to run in full capacity. As the whole economy rebounds in 2017, home buyers must expect mortgage packages to be competitively priced, although they will not also lower at that time. Rates will, in fact, increase, so discretion is required for investors given these market conditions. More detailed information can be found at cmhc.ca For a market outlook on your Edmonton community click here to receive a Market Snapshot Christian Bailey RE/MAX River City 780-490-6730 Photo: courtesy of usnews.com Over the years, FSBO (For Sale by Owner) has been a popular route for people who intend to sell their homes in Edmonton, Alberta. To make this easier, follow the tips mentioned below. 1. Pick your Timeline One of the first things that you need to do is to determine when to sell. Make sure to have it sold once you are ready, meaning, you already have a new place to stay. More importantly, it should be sold when the market is attractive, making it easier to attract buyers. 2. Evaluate the value of your House This is not one thing that you can do on your own. You need to hire an appraiser to give you an idea how much you can have your house sold. 3. Clean your Home This does not need to be a do it yourself task. You can hire services of professional cleaners to tidy up the house and make it more attractive for prospects. 4. Home Inspection Carefully go through the different parts of the house and spot any potential problem that needs to be addressed. 5. Make it Move-In-Ready After the inspection, pay attention to repairing any problem, such as plumbing or electrical wirings. 6. Get Your House Staged The main goal of home staging is to make it more presentable, giving buyers the reason to love it. There are many professional home stagers in Edmonton, Alberta who can help you. It is considered to be a form of visual merchandising, and it relies heavily on interior design in order to attract buyers. It is like dressing your home to create a positive impression and to have a higher value. 7. Know your Selling Points This is another important thing to do if you opt for FSBO (For Sale by Owner). You need to highlight the strong points of your home, giving it an edge above other options available in the real estate marketplace. For instance, you should highlight having a swimming pool or a huge backyard if you have one. You can also emphasise location and accessibility. Being situated in a safe neighbourhood could be another selling point. 8. Market Your Home There are many free online marketing tools that can help you to sell your house faster. Facebook, Instagram, Twitter, and Craigslist are just some of the best choices. The best way to market your home, however, is through word of mouth. It will help if you have an extensive network, making it easier to find prospects. 9. Know How to Show your House Showing your property to interested clients in Edmonton, Alberta will be an opportunity to give them reasons why they should have it purchased. Make sure that it is clean and organised. Turn on the lights to highlight the different features of the house. Ask them if they would like to be guided during the tour of the house or if they would want to do so on their own. Be prepared to answer questions they might possibly have. Always be polite, energetic, and more importantly, positive. Be in the right mood to create a favourable impression, increasing the likelihood that you will be able to sell your house. 10. Be Prepared for Negotiation This is the trickiest part of the process. Do not easily give in to the demands of the client as this may make you end up selling at a loss. Choosing FSBO (For Sale by Owners) means that there will be no third-party to represent you. Make sure to understand the different terms that are essential. To sell your house successfully, see to it that you will come up with terms that will be agreeable for both parties. It is also important to know when you should stop negotiating and proceed in looking for other interested buyers. If you would like a free Market Evaluation on your home click here Christian Bailey RE/MAX River City 780-490-6730 3 Things You Need To Know Before Selling Your Home! Edmonton Real Estate With Christian Bailey9/3/2015 What is the value of your home? FIRST, you need to understand "Market Value". The single most important factor to determine before selling your home. Market value is determine by similar homes in features, size, age, upgrades and style during your present market. Knowing your real estate can be a huge insight and the difference between selling and being stuck on the market. SECONDLY, there are 3 types of real estate markets; Balanced, Seller's and Buyer's Advantage. A "Balanced Market" is when supply and demand are equal. In other words, the amount of listings on the market and the amount of Buyer's looking to purchase are equal. "Seller's Advantage" is when there is not enough supply and much more demand. This is where homes sell quickly at a much higher price. Since there is a higher demand and a limited supply of listed homes, this market can be very favourable to the Seller. "Buyer's Advantage" is a market where there is a greater supply of homes and far less demand. Currently in the Edmonton market, homes have been flooding the market and interest rates have dropped to encourage Buyers. This is a case where there is too much inventory of homes for sale and not enough Buyers. This creates inventory that is counted by the month. Anything more than 2 months of inventory is consider a Buyers market. And THIRD, How can you get your home evaluated? Of course coming from me (a licensed REALTOR®), I would suggest getting a home evaluation from a licensed real estate professional. This will provide you with all the information on the market value of your home and also what list price to put on your home. By the way this is free. A second way, get your home appraised by an appraisal company. This will cost you a few hundred dollars. This is a great option if you have done extensive renovations or you're refinance your home. Thank you for reading my blog, I would be happy to write a detailed home evaluation on your home. Click here and I'll get started today. Christian Bailey RE/MAX River City 780-490-6730 Price:$269,700 ~ Bdrms: 2+1 ~ Brms: 2 ~ MLA: 1800 sqft ~ Lot Size: 30,000 sqft Enjoy the beauty of this home with its sleek open concept and modern features. Upon entry, your first impressions will be delighted with a custom staircase where a gorgeous chandelier rests above. Near the top of the door, a beautiful large window allows for natural light to shine. This move-in-ready modern home includes a new roof, new windows, decks, floors, doors, faucets, light fixtures and many others. The backyard opens to a spacious green patch to enjoy the summer days while keeping your privacy. Priced to sell. Book your viewings today! Christian Bailey Licensed Real Estate Professional 902-579-3231 |
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